China buys 40% in Pak Stock Exchange

[Hell hound]

A short opinion considering the debate here.
1) First people saying that Pakistan is doing demutualization is bad as this is first country to do it or it is for sale. Stockholm Stock Exchange, Amsterdam Stock Exchange, Borsa Italiana, Australian Stock Exchange, Stock Exchange of Singapore, Toronto Stock Exchange, London Stock Exchange, Euronext, The Nasdaq Stock Market, Tokyo Stock Exchange, Bursa Malaysia, New York Stock Exchange and BOVESPA (Brazil)..All these stock exchanges are demutualized long before. Anyone can identify the name of countries whether they are sold out countries now ?..Check there market capitalization pre and post demutulization and then comment.

2) About the Share Price, no body was able to identify what was the book value and how market value was in term of book value. The SP was 3 times more than the book value that was calculated by a Professional Audit firm ,KPMG not by any tom dick and hairy.. The international average is 3.8 times ..Given the circumstances of Pakistan this is not bad as it is being portrayed.

3) Just to state few advantges it will improve better governance structures, access to economic capital, profit motivation for growth and development, removal of barrier to entry for new brokers (breaking the hegemony of few economic lords in Stock exchange), unlocking of value of membership cards, greater ability to attract listings, domestic and international recognition and ability to make international alliances. PSX can qualify to become a member of the World Federation of Exchanges, which has currently 68 members. This demutualization of the stock exchanges will actually convert the stock exchanges’ structure from nonprofit, mutually-owned organization to for-profit public limited company, owned by shareholders.This will break the hegemony of Broker Mafia

4) You will soon see the launch of derivatives, Index options and ETF(Exchange Traded funds) after demutualization, may be in last quarter of 2017.Those who know derivatives will surely call it as advancement and strength in equity market.

5) It was not only China, Turkish and Landon stock exchanges were also in a bid competition. Further if you compare these 3 markets it was better to go with China considering the capital and growth they have. Little hint count the number of investors in Chinese stock exchanges and then just imagine even if 1 % invest in PSX , thePSX index will be doubled in a year.

Thanks for such a great and detailed reply as always(be careful with that because you're becoming my go to guy and I will disturb you alot with my future quarries). I agree and knew most of the above mentioned advantages(except the derivatives one I didn't knew about it) and thanks again for clearing it for our other users.
There was no doubt about the advantages of demutalization in my mind. my only concern with this sale was increasing Chinese influence and their (unknown) way of governance.I think it would've been better(from only governance and regulation point of view) if UK had bought it.But we also can't dictate the biding process either.anyway lets hope for the best.

 

[ito]

Good for Pakistan in short term, but good for China in long term and that to China is buying one of the best performing stock markets in the world for a steal

 

[Naheed Janjua]

Hopefully - they will bring efficiency and transparency into the market so this is a positive move.

 

[Pakistan First]

To all the dumb fuc% indians who couldn't understand this:

Offering China to buy a significant stake in PAKISTAN Stock Exchange was to let China put money where it's mouth is, to let China prove that it is indeed strategically invested in Pakistan, to let China demonstrate that indeed it considers its engagement with Pakistan as something deep, strong and permanent. This single action indicates the direction where China believes Pakistan's economy is heading.

The recent actions by both Pakistani and Chinese Governments have demonstrated that both countries are intertwined strategically now, economically as well as militarily.

The last two to three years of steps both these countries have made, individually and mutually, have almost neutralised the threats posed by India towards Pakistan.

This is why, Pakistan has mostly adopted a "Fuc% off, not interested" attitude towards India lately.

 

[Bhupendra Singh_Cyan]

NS government has mortgaged our much hyped and fascinating Motorway even so one can imagine all assets are going to be sold

Ye Bik gayi hai gormint

This is very bad for Pakistan .. How did you decide it ? if you don't have knowledge of economics

Actually I do have knowledge cause I'm working for a stock firm only mate

 

[Mrc]

This not good. Pakistanis should own this. Not China.

Pakistanis own 60 %

 

[chandrak]

why indians r crying for??? u shud mind ur own business ....

Here ,in every threads india is mentioned directly or indirectly..we never said mind ur own business and dont drag india..

 

[Manidabest]

Here ,in every threads india is mentioned directly or indirectly..we never said mind ur own business and dont drag india..

but we never say why americans r opening or invested in call centers in india .... so dont cry or feel sad when some other country invest in OUR COUNTRY you got it !!!

 

[chandrak]

Here i have seen people crying for aazadi for kashmir...first they lost half (bangladesh) and now rest is going to be slave of china..first understand the meaning of aazadi and then save what u have and then dream for kashmir ..

 

[Sully3]

Here i have seen people crying for aazadi for kashmir...first they lost half (bangladesh) and now rest is going to be slave of china..first understand the meaning of aazadi and then save what u have and then dream for kashmir ..

lol you indians are funny

for hundreds of years you got ruled on first by the Mughals then by the british empire and the indian is telling us about azadi. being ruled on foreign powers is in your DNA as a nation not ours.

you will always be the "yes sir/no sir" indians bowing down to the white man

 

[中国加油]

Here i have seen people crying for aazadi for kashmir...first they lost half (bangladesh) and now rest is going to be slave of china..first understand the meaning of aazadi and then save what u have and then dream for kashmir ..

Indians are jealous that China has a lot of money to invest in Pakistan, but not India.

 

[kṣamā]

Indians are jealous that China has a lot of money to invest in Pakistan, but not India.

Quite true. As an Indian I am really out of my wits that India missed this opertunity. We all know that with CPEC operational Pakistan would have hard time keeping track of all the trilions of $ floating arround and clogging up the drains, people taking personal helicopter to get milk and eggs and everyone having their own satellites for television streaming . Also the cost per share is way too high for an agrarian country like ours... how can we spend so much money...? The exponential growth in Pakistani market is absolutely breathtaking...

I am just shocked why didn't this idea of selling nearly half of own countries share to a third country struck someone else before... Truly a genius idea.

 

[ranadd]

CPEC driving the Indians like you mad?... well then... give me more CPEC...

This is a great move by PSX ... brings it online with other modern exchanges around the world. Coming of age.

I guess you do wont even know you are being sold.

 

[chandrak]

lol you indians are funny

for hundreds of years you got ruled on first by the Mughals then by the british empire and the indian is telling us about azadi. being ruled on foreign powers is in your DNA as a nation not ours.

you will always be the "yes sir/no sir" indians bowing down to the white man

We learnt the lesson already , and others are feeling heat of its too..see how indians are intolerant now a days? Forgot about kashmir lol..Ur country keeps crying not about the forgiveness of india but about the hard handling of extrimists..long gone the days indian were peaceful and all loving..those who created the hatred must feel it too

 

[Godman]

Anyone who can explain it. What made our govt to sell SE shares, why such a huge percentage, what will be advantages and disadvantages!

Chinese will manage it better, Govts don't need to own the Exchange they only need to regulate it.
This will also increase Chinese investors